Am I Eligible for a Bonus if My Salary Was Below 10,000 for Part of the Year?

Riaz Khan Rehman
My salary is 9500/- from April 2007 to December 2007. It is increased to 10,100/- from January 2008 onwards. Am I eligible to receive a bonus for the months from April 2007 - December 2007?

If an employee has worked for less than 10,000 Rupees for even one month in a financial year and for the rest of the months he has drawn a salary of more than 10,000/-, then is the person entitled to receive a bonus for that particular month for which his salary is less than 10,000/?
malikjs
Dear, you are entitled to a bonus for the complete financial year, and the calculation will be done for $3500 only.

Thank you,
J.S. Malik
Riaz Khan Rehman
Thank you for your reply, Mr. Malik. My company's HR department is stating that since my salary was above 10,000/- on the date of the bonus calculation, I am not entitled to receive it, even though I had a salary below 10,000/- for 10 months. Can you please direct me to the exact rule that states I am entitled to receive the bonus? Also, could you please explain why it is only 3500/-? Thanks in advance.
umaselva
Dear all,

Bonus is paid only for the last financial year. If your salary is below 10,000/-, you are entitled to 3500/-. Your HR cannot refuse to pay, saying you are not eligible for the bonus.
malikjs
Dear [Name],

Your HR information is not correct. Please refer to Section 8 of the Payment of Bonus Act. If someone works more than 30 days in a financial year, they are entitled to a bonus. You were employed for 9 months, so they cannot refuse you a bonus.

The eligibility for the bonus is Rs. 10,000, but it should be paid considering that you were only paid Rs. 3,500.

Thank you,

J.S. Malik
kvijnr
Firstly, the bonus is always calculated on Basic + DA (Dearness Allowance). If these components are less than 10k monthly, then you are very well eligible for the Bonus for the period April 07 - March 08, which has to be paid before 30th Sep 08. If your basic + DA component goes above 10K per month from January 08, then you must be paid a bonus for the period April 07 - December 07. Please inform your HR that not paying the bonus is a legal offense under labor law.
swetasawant
You are entitled to a bonus for the financial year. Also, inform your HR that the bonus was paid for last year, not for the current year, so they cannot claim that you are not entitled. The bonus is calculated based on Basic+DA.

Please let your HR know that if they want a better understanding of the Bonus Act, they can call me at 9909001742.

Regards,

Abhijeet Sawant
deepakkotian
Dear RK,

You are very much eligible for last year's bonus. Now that your basic plus DA exceeds 10,000, you will not get a bonus but you should receive the same amount henceforth as ex-gratia.

Regards,
Deepak Harsha
raghavareddy.nr
Dear All,

I hope you are all doing well. As per my concern, those who are receiving a salary below Rs.10,000 (Basic+DA) are eligible for a bonus. In this scenario, you should receive a bonus up to December 2007. After December, you will receive an ex-gratia payment because you have exceeded the bonus limit of Rs.10,000.

Thank you.
sindu12_2008
Dear All,

I hope all of you are doing well. As per my understanding, those who are receiving a salary below Rs.10,000 (Basic+DA) are eligible for a bonus. In this scenario, you should receive a bonus up to December 2007. After December, you will receive ex-gratia, as you have exceeded the bonus limit of Rs.10,000.

Thank you.
sindu12_2008
Dear All,

I am Sandhya P. I am working in an NGO in Hyderabad as an HR Manager. I want a standard Contact Letter. Please send and help me.

Regards,
P. Sandhya
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute